Standard Bank presents property finance model
The Investment Banking Director of Standard Bank was one of the keynote speakers at Real Estate Conference, held on 13 June in Maputo,in order to reflect on the dynamics of the national real estate market.
Ronaldo Toledo, Investment Banking Director, presented to an audience of 200 economic agents, the innovative model to finance real state projects, implemented by Standard Bank in the country, representing an integrated and safe approach to the structuring, management and efficient execution of projects in the sector.
He explained that the property finance model implemented by the Bank results from a “formula applied successfully” by Standard Bank Group in South Africa and in several other African countries, many years ago, but that was adapted two years ago specifically for Mozambique.
“This is an innovative solution that, despite involving several steps, ensures greater security to the investor, buyer and tenant of the property”, he said, adding that “the new way that Standard Bank is currently implementing in the country, holds a valid warranty for the real estate projects to be effectively completed with success”.
The introduction of the property finance model in Mozambique - as noted - “revolutionized the way they were being made in the financing sector in the country, taking into account market opportunities and business strategies”.
In a brief discussion about the experience of Standard Bank in financing real estate projects, Ronaldo Toledo mentioned a project, still in progress, aiming to build on the country’s capital, the headquarters of Anadarko Mozambique, a subsidiary of the U.S. group Anadarko Petroleum.
“It is a project that is almost complete and was done on time and at the exact cost, where Standard Bank financed 15 million U.S. dollars, plus a contribution of the partners of the project, corresponding to 30 percent of the total project value“ explained the Investment Banking Director of Standard Bank.
He added that “we have had projects with Vale Mozambique, in Tete province, where two companies, namely CR Holdings and Vale dos Embondeiros, built 50 houses each”.
“Right now, we are expanding these projects and have refinanced on this basis, of other major projects such as the construction of shopping malls, among other projects”, concluded Ronaldo Toledo.
Note that in addition to this financing solution to large real estate projects; Standard Bank also has the traditional “Equity Release”, a product that allows the client to obtain funding for any purpose, using his or her property as warranty.